THE CUBA REVIEW 



Havana Correspondence 



November 23, 1921. 

 Sugar: Now that the grinding season has finally come to a close, the last mill, 

 Santa Lucia of Oriente Province, having ceased grinding last week, the uncertainty 

 regarding the future of the sugar industry in Cuba is more pronounced perhaps than it 

 has ever been before. 



A great manj' important questions bearing upon next season's production remain 

 to be settled previous to the opening of the next "zafra." The most important of 

 these are, of course, financing and crop control or limitation. It is generally believed 

 that some measures will be adopted either through legislative channels or mutual agree- 

 ment among the sugar growing interests which \\\\\ in some way limit the amount of 

 the product until such time as it will again be feasible to raise and harvest all the sugar 

 that the countrj^ is capable of producing. That there will be strong opposition to any 

 scheme of crop limitation is shown by the results of a questionnaire recenth^ sent out 

 by a leading commercial newspaper in Havana to men prominently identified with 

 financial, sugar, and general commercial enterprises throughout the country. The pre- 

 dominance of opinion as the result of this poll, it would seem from the returns secured, 

 is opposed to any such means of solving the problem. 



During the past few weeks there has been quite a healtlw and steady sale of sugars, 

 and while the tonnage still remaining in the warehouses to be sold is considerable, it 

 is believed that were the next grinding season delayed a few weeks later than is cus- 

 tomarj', the mills would be permitted to resume operation without the handicap of a 

 large leftover crop to be gotten out of the waj^ before the next season's crop could be 

 placed on the market. 



Naturally, the matter of finances is still a troublesome one, and while for a time it 

 looked as if some aid might be expected from the government when the proposed loan 

 issue was secured, all present indications are that this will not be done and it will be 

 up to the sugar interests to work out their own financial salvation. The government 

 is already badly in need of funds for various pressing needs and it is argued that if 

 the sugar industry were helped, other worthy and needy commercial enterprises should 

 also be given consideration. 



After having been under fire ever since its inauguration, the Sugar Sales Commis- 

 sion will at last be abolished. President Zaj'as, after conferring with leaders of both 

 branches of the legislative body, decided to abolish the Commission on December loth. 

 Financial Situation: Pending negotiations between financial interests in the 

 United States and the government here are paramount today in Cuba and until a final 

 decision is reached between the respective parties to the loan it is not expected that 

 there will be a very great change from the feeling of apathy and depression which has 

 prevailed for several weeks in financial and business circles. 



No report from the commission in charge of the liquidation work on the defunct 

 banking institutions has as yet been forthcoming, although many rumors of an early 

 report of their findings have been issued only to be denied later. Plans submitted by 

 Digon Brothers, one of the smaller, private institutions to succumb during the mora- 

 torium, to the Temporary Bank Liquidation Committee have been approved by that 

 body. This institution was a very popular one and most o"" the creditors will feel that 

 they will receive dollar for dollar when the final result of the accounting is made public. 

 Rumors which were rife until recently, predicting the criminal prosecution of negligent 

 and dishonest banking officials, seem to have suddenly been killed altogether for some 

 reason or other, and the newspapers which were agitating such action refrain from all 

 comment upon the matter. President Zayas has, however, strongly urged Congress 

 to pass more stringent banking laws than those now in existence. Budget reductions 

 aggregating several million dollars have been recommended by the President, practi- 

 cally every department of the government suffering a severe reduction from the appro- 

 priations allotted them last year. The President has also recommended the dissolution 



